PepsiCo Inc. has secured a significant legal victory as the Delhi High Court overturned the decision to revoke the patent for its FC5 potato variety, a crucial ingredient in Lay’s potato chips. The Indian Protection of Plant Varieties and Farmers’ Rights Authority initially revoked the patent in 2021, citing regulations that prohibited the patenting of seed varieties. Following a dismissal of PepsiCo’s appeal in July 2023, the recent judgement by the Delhi High Court marks a reversal of that decision, eliciting a positive response from the company.
The Delhi High Court has nullified the earlier decision that stripped PepsiCo Inc. of its patent for the potato variety essential to Lay’s potato chips. The Indian Protection of Plant Varieties and Farmers’ Rights (PPVFR) Authority revoked the intellectual protection for PepsiCo’s FC5 potato variety in 2021, asserting that Indian regulations did not permit the patenting of seed varieties.
PepsiCo promptly challenged this decision by filing an appeal with the Delhi High Court, but Judge Navin Chawla dismissed the appeal in July 2023. Undeterred, the company persisted, appealing to the same court to reconsider the dismissal.
In a judgement dated January 9, Delhi High Court judges Yashwant Varma and Dharmesh Sharma overturned the July 2023 ruling, delivering a favourable outcome for PepsiCo. The company expressed satisfaction with the decision, emphasizing its commitment to collaborating with farming communities to ensure mutual benefits and overall progress.
PepsiCo, a key player in the Indian market since establishing its first potato chip plant in 1989, supplies the FC5 seed variety to a group of farmers who, in turn, sell their produce to the company at a fixed price. The FC5 variety, exclusively developed and registered by PepsiCo in 2016, is prized for its lower moisture content, making it ideal for snacks like potato chips.
The legal saga began in 2019 when PepsiCo sued Indian farmers for allegedly infringing its patent on the FC5 potato variety. Seeking over 10 million rupees ($120,490) from each accused farmer, the lawsuits were later withdrawn by PepsiCo within months.
PepsiCo’s victory in reclaiming its potato patent adds another chapter to the broader landscape of intellectual property disputes faced by U.S. companies in India. Notably, seed maker Monsanto, now under the ownership of German drug company Bayer AG, withdrew from certain businesses in India following a protracted intellectual property dispute.